The GBPUSD pair has been on an impressive upward trajectory. Starting from a low of 1.2664, the pair has surged to reach an impressive high of 1.3246. This substantial move reflects growing strength in the British Pound against the US Dollar and has many traders questioning how much further this rally might extend.
Technical Analysis: The Rising Channel
A key feature of this bullish move is the rising price channel visible on the 4-hour chart. This pattern is crucial for traders to monitor, as it provides valuable insights into potential future price action.
Bullish Scenario
As long as the GBPUSD price remains within this ascending channel, we can anticipate further upside movement. Here are the key levels to watch:
- Immediate Target: The 1.3350 area stands out as the next significant level for bulls to conquer.
- Extended Target: If momentum persists and fundamental factors align, we could see a push towards the psychologically important 1.3500 region.
Potential Reversal Scenario
While the trend is currently bullish, prudent traders always prepare for potential reversals:
- Channel Support: The lower boundary of the rising channel is a critical level to watch. A breakdown below this support could signal a shift in the short-term trend.
- Key Support Levels:
- 1.3179: This level could provide initial support if the pair pulls back.
- 1.3070: A more significant support area that could come into play if the bearish momentum intensifies.
Conclusion
The GBPUSD pair is showing strong bullish momentum, operating within a well-defined rising channel. While the trend remains positive as long as the price stays within this channel, smart traders will keep a close eye on crucial support levels for any signs of weakness.